SBP injects Rs8.18trn into market through OMOs

The State Bank of Pakistan (SBP) conducted an Open Market Operation (OMO) on Friday, injecting a total of Rs 8.18 trillion into the money market. 

This decisive action includes Rs7.78 trillion through reverse repo OMO and Rs398 billion through Shariah-compliant Modarabah-based OMO.

The 7-day and 28-day reverse repo saw an injection of Rs784.35 billion and Rs6.999 trillion respectively, at a rate of approximately 22.05%. 

In addition to the conventional OMO, the SBP also injected Rs398 billion through Shariah-compliant channels, reflecting the growing importance of Islamic finance in the country’s monetary operations.

The 7-day and 28-day Shariah-compliant OMO saw an injection of Rs 212 billion and Rs 186 billion at a rate of 22.08% and 22.07% respectively.

This move of the central bank is aimed at managing the liquidity in the banking system and ensuring the smooth functioning of financial markets.